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2008 (2) TMI 882 - HC - Income TaxGranting registration u/s 12A - Approval under section 80G - ignoring the fact that it had religious purpose and not charitable purpose - HELD THAT:- We find ourselves in agreement with the view of the Madras High Court in New Life in Christ Evangelistic Association v. CIT [1998 (8) TMI 8 - MADRAS HIGH COURT] that the question of exemption under sections 11 and 12 of the Act or as the case may be, u/s 80G of the Act, would come only when such exemptions are claimed by the trust at the time when it is assessed to tax. In this backdrop of the legal position, the statement of the AR before the CIT that purpose of seeking registration u/s 12A is to get the approval u/s 80G of the Act does not come in the way of the assessee in seeking registration u/s 12A, if otherwise a case for such registration is made out. The Tribunal, thus cannot be said to have erred in setting aside the order of the CIT insofar as the order passed on the application for registration u/s 12A was concerned. The Tribunal also did not err in observing that at the stage of enquiry, the CIT cannot insist upon the trust to show upon the application of fund. However, in our considered view, the consequential order of registration of the trust ought not to have been made by the Tribunal and matter ought to have been remitted to the CIT for fresh consideration and disposal of the application made by the trust u/s 12A of the Income-tax Act in accordance with law. We answer the question No. (ii) accordingly. The application made by the trust for registration u/s 12A of the Income-tax Act is restored to the file of CIT for fresh consideration and disposal accordingly. Since the appeal to the Tribunal from the order of the CIT under section 80G of the Act has been held to be not maintainable, it will be open to the assessee to assail the legality and correctness of the order passed by the CIT in appropriate proceedings, if so advised. Order accordingly.
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